Producer prices continue to climb

Producer output prices rose 1.4 per cent in the March 2017 quarter, while input prices rose 0.8 per cent, said Stats NZ.

In the March 2017 quarter, producer output prices were influenced by higher prices received for dairy products, while higher crude oil prices pushed up the input costs at oil refineries.

In the year to the March 2017 quarter, producer output prices increased 4.1 per cent, and input prices increased 4.2 per cent.

“The prices paid by fuel manufacturers were up 43 per cent in the year to the March 2017 quarter, mainly due to higher crude oil prices,” business prices manager Sarah Williams said.

In March 2016, the prices fuel manufacturers paid were at the lowest level since the June 2003 quarter. This industry produces refined fuels that are used by many other industries.

In the March 2017 year, prices received by dairy cattle farmers and dairy product manufacturers rose 49 per cent and 22 per cent, respectively. Farm-gate milk prices increased from $3.90 to $6.00 per kilo of milk solids, and dairy manufacturers received higher prices for milk powder.

In comparison, the consumers price index, which measures the price of goods and services paid by households, increased 2.2 per cent in the year to the March 2017 quarter, also influenced by rising fuel prices. In the year to the March 2017 quarter, the average price paid by households for 1 litre of 91 octane petrol rose 12 per cent – from $1.69 to $1.90.